Budget compromise fails

Phoenix, AZ – Efforts to adopt a new spending plan for the budget year thatbegins Wednesday stalled on Saturday as Republicans balked at onekey element.

Most Republicans like the $8.4 billion spending plan. They alsosupport tax breaks backers say will help spur economicdevelopment, including one that replaces Arizona's graduatedindividual income tax with a flat 2.8 percent levy. The problemhas been corralling Republicans to back what Gov. Jan Brewer wants-- a November vote to temporarily hike the state's 5.6 percentsales tax by a penny. Senate President Bob Burns said he'llprobably need Democratic support.

(They typically support continuing spending levels. I believe theproposal they put on the table continued spending levels foreducation and other social services, etc. So in order to maintainthat, they're going to have to have some, certainly a lot ofadditional revenue.)

The tax plan could raise $1 billion a year to restore spendingcuts. So far, though, Democrats have been chilly to the plan.They don't like the sales tax because it hits the poordisproportionately hard. And they oppose sharply lowering incometaxes for the most wealthy. So what would it take to getDemocratic votes? Senate Minority Leader Jorge Garcia had asimple answer.